January Trends and First-Time Buyer Surge
Welcome to this month’s market update! We'll look at why First-time buyers have been so active and also discuss the recent changes to Interest Rates!
How Did the Market Perform in January?
We’ve had an eventful start to the year. The Bank of England recently reduced the base rate from 4.75% to 4.5%, and we’ll discuss the impact of this on the market shortly. But first, let’s take a look at how January played out.
The beginning of the year was marked by wintry weather across the region, which caused some disruption. This is reflected in the data, with the number of new listings slightly lower than January last year. However, the number of properties sold was a different story. According to TwentyEA’s data, sales across the region were up nearly 10% year-on-year, showing strong buyer demand. Additionally, the average sale price saw an increase of about 4% compared to the previous year.
First-Time Buyers Driving Market Growth
A particularly interesting trend was the significant rise in first-time buyer registrations within our business—up by around a third compared to last January. In fact, this is the highest number of first-time buyers we’ve recorded in any January to date. This is encouraging because first-time buyers play a crucial role in keeping the market balanced, allowing others to upsize or downsize more smoothly.
There is some speculation that this surge may be driven by buyers looking to complete transactions before the stamp duty changes take effect on April 1st, when the first-time buyer threshold will drop from £425,000 to £300,000. While this could be a factor, the average transaction time of around four months makes it a tight deadline. More likely, other influences are at play, such as the rising cost of renting, financial support from family, and increasing lender confidence in first-time buyers. With more mortgage options—including 95% and even 100% mortgages—becoming available, we are seeing a positive shift in accessibility.
The Impact of Interest Rate Cuts
The recent cut to the base rate is another factor influencing buyer sentiment. While fixed-rate mortgages are more aligned with the 10-year gilt rate, any reduction in the Bank of England’s base rate generally helps boost confidence in the market.
Looking Ahead
Overall, 2025 has kicked off with strong market activity. Our initial predictions of a busy year with moderate price growth of around 5% still stand. We’ll continue monitoring trends, so stay tuned for future updates. And if you’re in Holmfirth, feel free to drop by our branch—our expert team would be happy to chat about your moving plans!
